The $10-50 price range often includes mid-sized businesses with proven track records and plenty of growth runway ahead. They also usually carry less risk than penny stocks, though they’re not immune to volatility as many lack the scale advantages of their larger peers.

This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. Keeping that in mind, here are three stocks under $50 to avoid and some other investments you should consider instead.

Avnet (AVT)

Share Price: $50.28

With a century-long history of adapting to technological evolution, Avnet (NASDAQ: AVT) is a global electronic components distributor that connects manufacturers of semiconductors and other electronic parts with businesses that need these components.

Why Does AVT Fall Short?

1. Sales tumbled by 8.5% annually over the last two years, showing market trends are working against its favor during this cycle
2. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
3. Low free cash flow margin of -0.1% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders

At $50.28 per share, Avnet trades at 11.1x forward P/E. To fully understand why you should be careful with AVT, check out our full research report (it’s free for active Edge members).

Concentrix (CNXC)

Share Price: $44.82

With a team of approximately 450,000 employees across 75 countries, Concentrix (NASDAQ: CNXC) designs and delivers customer experience solutions that help global brands manage their customer interactions across digital channels and contact centers.

Why Is CNXC Not Exciting?

1. Performance over the past two years shows its incremental sales were less profitable, as its 2.5% annual earnings per share growth trailed its revenue gains
2. Low returns on capital reflect management’s struggle to allocate funds effectively, and its falling returns suggest its earlier profit pools are drying up
3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

Concentrix’s stock price of $44.82 implies a valuation ratio of 3.8x forward P/E. Dive into our free research report to see why there are better opportunities than CNXC.

Starwood Property Trust (STWD)

Share Price: $18.74

With a diverse portfolio spanning commercial properties, residential mortgages, infrastructure loans, and real estate servicing, Starwood Property Trust (NYSE: STWD) is a real estate investment trust that originates, acquires, and manages commercial mortgages, residential loans, and other real estate investments.

Why Is STWD Risky?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 6% annually over the last two years
2. Net interest income tumbled by 2.5% annually over the last four years, showing market trends are working against its favor during this cycle
3. Annual tangible book value per share declines of 4.1% for the past two years show its capital management struggled during this cycle

Starwood Property Trust is trading at $18.74 per share, or 1x forward P/B. Check out our free in-depth research report to learn more about why STWD doesn’t pass our bar.

Stocks We Like More

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Don’t let fear keep you from great opportunities and take a look at Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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